Pay Excise Tax Using e-Dirham Facility by UAE Government

One 17 September 2017, the Federal Tax Authority (FTA) has announced that the UAE Excise Tax that will come to effect on the 1st October this year shall be collected in e-Dirham only. The United Arab Emirates (UAE) has been always trying to develop even more the transparency, efficiency, and safety of people with regard to financial transactions. Advanced countries in the world have been keeping pace with developments along the lines of FinTech (which is financial technology’s portmanteau that speaks about the emergence of financial services) and UAE is not letting itself be left behind as it always strives to be one of the most advanced nations on Earth.

What is e-Dirham?

The Ministry of Finance (MoF) has launched a smart technology called e-Dirham last 2011 for the purpose of developing its system of collecting service fees and revenue for the Federal Government via Prepaid Cards, in this case, the public services are delivered efficiently. More than 5,000 government services in ministries, federal and local authorities, and private sectors are connected to the use of the aforementioned smart payment method. By using the flexible e-Dirham, payments can be done through online applications, mobile phones, and even electronic collection through various payment channels with universal standards. This advanced payment method is collaborated by the government with the National Bank of Abu Dhabi (NBAD). There are approved outlets wherein e-Dirham can be used for the comfortability and to further facilitate individuals and companies/businesses.

E-Dirham Cards

E-Dirham doesn’t only come with one simple card but with several ones and each has its own features to suit different kinds of people. Besides the discount on service fees and the cards not requiring for people to have a bank account, a couple more of attributes are listed below.

a) Blue Al haslah Card

This card is a VISA-co-branded card that doesn’t need any registration and can be accepted at worldwide merchants and at e-Dirham G2 merchants. This means that it can be used for purchases and cash withdrawals anywhere in the world at merchants that VISA brand is accepted. This can be used for two years with the expiry date stated on the card itself, along with the card number and serial number, although the cardholder’s name and picture are not.

b) Red Al haslah Card

This card, on the other hand, is a private label card and not a VISA-co-branded card although it doesn’t need any registration as well. This is only accepted at e-Dirham G2 merchants. This can be used for a year from the first time it was loaded. The card number and serial number are printed on the card although the cardholder’s name and picture are not.

c) Gold Al haslah Card

Just like the previous one, this card is a private label card as well and not a VISA-co-branded card although registration is not required. This is only accepted at e-Dirham G2 merchants. This can be used for three years and the expiry date is printed on the card, along with the card number and serial number. The cardholder’s name is printed in Arabic and English with the person’ picture.

d) Green Al Haslah Card

This card is the same as the first one in the sense that it is also a VISA-co-branded card that doesn’t need any registration and can be accepted at worldwide merchants and at e-Dirham G2 merchants. This means that it can be used for purchases and cash withdrawals anywhere in the world at merchants that VISA brand is accepted. This can be used for three years with the expiry date stated on the card itself, along with the card number and serial number. The cardholder’s name is printed in Arabic and English with the person’ picture. The card also has 3DS enrolment that adds another layer of security.

e) Silver Al Haslah Card

This card is almost identical to the Green card since it is also a VISA-co-branded card that doesn’t need any registration and can be accepted at worldwide merchants and at e-Dirham G2 merchants. The following advantages are also present in this card: it can be used for purchases and cash withdrawals anywhere in the world at merchants that VISA brand is accepted, it can be used for three years with the expiry date stated on the card itself, along with the card number and serial number, the cardholder’s name is printed in Arabic and English with the person’ picture, and the card also has 3DS enrolment that adds another layer of security.

In loading, it can be done through all NBAD branches in the UAE, e-Dirham G2 ATMs/CDMs, or NBAD ATMs/CDMs. In reloading, it can be done through all NBAD branches in the UAE for a fee of AED 8, e-Dirham G2 ATMs/CDMs for a fee of AED 2, NBAD ATMs/CDMs for a fee of AED 2, or distribution channels in the UAE for a fee of AED 4. The load receipt also has an activation code for setting the password. Safe transactions can be expected with online government and non-government service purchases on the websites of e-Dirham-G2-subscribed entities.

How to Obtain an e-Dirham Card for Excise Tax Payment?

The Government Client Card can be issued online with the following requirements below as per the MoF website: 1. JPG photos of the following documents: Individuals: Personal Photograph / passport copy / signature; Institutions: Photograph / passport copy / signature / company’s registration 2. Providing service without fees 3. The card will be delivered by Aramex. The card will be sent after three days from applying.

Now Excise Tax Law is being implemented, it is important that the businesses involved in the implementation of this tax will have an e-Dirham card for them in order to pay for the dues they need to settle with regard to Excise Tax. If you need any advice with regard to tax accounting & tax consulting services, FAR – Farhat Office & Co. has its doors open for consultation.